In brief
On Friday, the Dow, S&P 500, and Nasdaq all suffered double‑digit declines after Amazon and Alphabet posted weaker-than‑expected results. Technology and semiconductor stocks lost the most, with Intel sliding 28.58% and SanDisk falling 13.47%. Oil prices rose, adding pressure to broader sentiment. Federal Reserve officials warned that inflation remains too high and suggested higher borrowing costs may be needed.
U.S. stocks tumbled on Friday after Amazon and Alphabet posted disappointing earnings, triggering concerns about the sustainability of big artificial‑intelligence capital spending.
The Dow Jones Industrial Average fell 572.25 points, or 1.09 percent, to 51,770.31; the S&P 500 sank 140.32 points, or 1.82 percent, to 7,580.07; and the Nasdaq Composite plunged 747.73 points, or 2.86 percent, closing at 25,437.
Technology stocks led the decline, tumbling 4.24 percent, while industrials fell 1.57 percent. Energy and consumer staples were the only sectors in positive territory, up 1.91 percent and 1.38 percent respectively.
Amazon shares fell 1.41 percent, and Alphabet’s decline was its steepest single‑day percentage drop in over two decades, reflecting investor wariness over the pace of AI investment.
Intel’s fourth‑quarter revenue outlook missed Wall Street estimates, sending the chipmaker’s shares down 28.58 percent. Data‑storage firm SanDisk slid 13.47 percent after beating first‑quarter earnings forecasts, as investors looked past its eight‑for‑one forward stock split.
Commodity markets added fresh headwinds: crude oil futures rose more than 2 percent, with Brent crude reaching $117.64 per barrel and West Texas Intermediate climbing to $104.12. The jump in oil prices stoked inflation worries and added pressure to the market.
Federal Reserve officials reacted to the slide with hawkish comments. St. Louis Fed President Alberto Musalem warned that inflation remains excessively high and broad‑based, emphasizing the need for action to prevent entrenched prices. Richmond Fed President Tom Barkin said policy remains pointed toward higher borrowing costs to rein in persistent inflation, noting the key question is the pace and extent of future tightening.
